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Steven's Distributors, Inc. v. Gold, Rosenblatt & Goldstein

2010 N.Y. Misc. LEXIS 3336 (2010)

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Steven’s Distributors, Inc. v. Gold, Rosenblatt & Goldstein

New York Supreme Court
2010 N.Y. Misc. LEXIS 3336 (2010)

SC

Facts

Steven’s Distributors, Inc. (Steven’s) (plaintiff) rented commercial real estate and subleased the space to a third party. Steven’s hired Gold, Rosenblatt & Goldstein (defendant) to collect rent from the sublessee. Ultimately, Steven’s did not collect from the sublessee and could not pay its landlord. Steven’s filed for bankruptcy. Steven’s hired the law firm Robinson Brog to sue Gold, Rosenblatt & Goldstein, alleging that the negligence of member Steven Goldstein (defendant) caused the inability of Steven’s to pay the landlord. Robinson Brog also represented Winhall II Funding Associates (Winhall), a partnership, in a separate action. David Gold and Randi Rosenblatt, members of Gold, Rosenblatt & Goldstein, were general partners in Winhall. Gold & Rosenblatt, a professional limited-liability company, became the successor to Gold, Rosenblatt & Goldstein. David Gold and Randi Rosenblatt were the only members of Gold & Rosenblatt. Gold & Rosenblatt filed a motion to disqualify Robinson Brog from representing Steven’s. Gold & Rosenblatt argued that there was an impermissible conflict of interest because Robinson Brog would effectively be suing its own clients from the Winhall action, David Gold and Randi Rosenblatt, in the Steven’s action.

Rule of Law

Issue

Holding and Reasoning (Madden, J.)

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